EU adopts mandatory circular design and recycling rules for cars

The European Union's Council has approved a new regulation that requires all passenger cars and light commercial vehicles sold in the bloc to be designed, produced and dismantled with circularity in mind. The rule sets a target that at least 15% of the plastic used in new vehicles must come from recycled sources six years after the law takes effect, rising to 25% after ten years, with 20% of that recycled content required to be sourced from end‑of‑life vehicles.

Manufacturers will bear extended producer responsibility for the entire life‑cycle of their vehicles, including free collection of end‑of‑life cars and delivery to authorised treatment facilities. The regulation also bans the export of vehicles that are no longer road‑worthy, aims to eradicate illegal "ghost" vehicles, and seeks to keep valuable raw materials within the EU.

Industry groups, such as the European Automobile Manufacturers Association (ACEA) and Confindustria, have warned that the stringent requirements could raise costs and threaten competitiveness. They are urging the European Commission to soften the rules, adopt a more flexible approach, and maintain technological neutrality to protect jobs and allow a balanced transition toward decarbonisation.